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Budget going to be ‘market-neutral’: Morgan Stanley

As the month of February is reaching there are several expectation from all sections of Indian businesses and common people and employees with several rumors are spreading for a good hope one Prime Minister Modi. But, The Union budget is going to be a “market-neutral” event as policymakers are not likely to change their policy stance and will continue to focus on fiscal consolidation, says a Morgan Stanley report.
“We do not expect major changes in the conduct of fiscal policy and hence, view the budget as a market-neutral event,” Morgan Stanley said in a research note.
The Union budget for 2017-18 is due to be presented on February 1. According to Morgan Stanley India Strategist Ridham Desai, the budget’s influence on short-term market performance is declining.
“Market participants will have to deal with a fair amount of volatility on the budget day though even this volatility has been declining over the past 25 years,” Desai said. Sector-wise, the budget is expected to be positive for autos, cement and metals, consumer, Internet and e-commerce, media and real estate.